Learn more about the evolving SMSF Landscape: Industry Insights from 2025
Recent statistics drawn from the ATO’s June 2025 SMSF quarterly statistical report have been recently released highlighting the continuing growth of the superannuation sector. Starting 1 July 2024, the superannuation guarantee rose from 11.0% to 11.5% (Up to 12% from 1st July 2025) pouring more money into the superannuation sector. Total superannuation assets across the industry have surpassed $4 trillion, with SMSFs accounting for just over 24%, exceeding $1 trillion in assets. SMSF growth was 6.3%, and their assets increased by 5.5%.
New SMSFs and Wind-ups
The appeal of SMSFs continue with 41,980 new funds established in 2024/25 year with growth remaining strong and fund wind-ups continuing to decrease. The total number of SMSFs reached 653,000 which is a record high since modern SMSFs were established in 1999 and SMSF members reached 1.2million.
Key indicators show SMSF numbers are trending up which is partly due to adviser recommendations. A challenge for the advice sector is adviser capacity, but digital advice is becoming more acceptable and can offer a low-cost solution. However, internet searches and word-of-mouth continue to be the primary source to initiate a new SMSF set-up.
Age Demographics
Generation X (45-60) and Millennials (29-44) now account for 90% of new SMSFs in 2024/25, marking a significant generational shift. This younger, tech-savvy group is driving changes in investment strategies and increased technology use, preferring online trading and adopting less traditional assets like Exchange Traded Funds (ETFs) and cryptocurrencies.
Investment Allocations
SMSFs are still investing largely in direct shares, while interest in ETFs is rising, especially among new SMSF entrants who are choosing ETFs more than retirees or total SMSFs. New SMSF entrants are also adding cryptocurrencies to their portfolios, which now account for about 7% of their portfolios much higher than retirees and all SMSFs, where crypto makes up less than 1%. Although cash holdings are decreasing, they remain essential for all SMSFs and sit at 15% in 2024/25 year. Notably, new entrants have cut their cash allocation to 9%, down from 22% in 2023/24 and 33% in 2022/23. Retirees have less direct property exposure being 9% compared to new entrants and total SMSFs which have 15%. Across all groups, managed funds make up between 5% and 6% of asset allocations.
Compliance Automation
Operational scale enables firms specialising in SMSFs to maintain competitive fee structures. This is primarily achieved through software automation, supported by personnel with technical knowledge of SMSFs who also assist clients to ensure they understand trustee responsibilities and obligations.
Specialist SMSF firms utilise dedicated superannuation software, such as Class, which electronically integrates with banks, brokers, and various investment platforms. These integrations streamline substantial data flows, with many processes executed automatically. Superannuation software efficiently manages and calculates income tax, realised and unrealised capital gains, GST, market valuations of managed funds and listed equities, as well as the allocation of net income and contributions to individual members. Additionally, it monitors each member’s total superannuation balance (balances are affected by external funds) and transfer balance caps (the maximum permitted in pension mode), facilitates electronic receipt and payment of rollover benefits via SuperStream, and accepts employer contributions which can be automatically allocated to the appropriate member.
Providers such as Class automate the preparation of financial reports, SMSF annual returns, member statements, and various trustee minutes. Nevertheless, accountants with specialised SMSF technical expertise are essential to ensure accurate recordkeeping and to support auditors with queries and necessary audit evidence.
SMSF Trustee
According to the latest available ATO data from 2022/23, corporate trustees account for 87% of all SMSF trustees. This growing preference for corporate trustees suggests that people increasingly recognise their huge benefits. Using a corporate trustee simplifies administration, especially when a member leaves or cannot continue as a trustee due to incapacity or extended periods spent overseas. Corporate trustees also ensure that asset titles, such as bank accounts, properties, and shares, do not need to be changed, saving both time and legal costs for property title updates. Additionally, this arrangement helps keep the personal assets of trustees or directors separate from those of the fund. Although individual trustees may seem less expensive and easier at first, any compliance breaches result in penalties for each trustee. For corporate trustees, however, the penalties are incurred by the company rather than its directors personally.
Evolving SMSF Landscape
- SMSF growth continuing strongly
- Younger generation driving growth in new SMSFs
- Accountants must have specialist SMSF knowledge and expertise
- Automation is key to maintaining competitive fees
- Non traditional assets such as ETFs and cryptocurrencies are gaining interests with new SMSF entrants
- SMSF corporate trustees are increasingly preferred
The evolving SMSF environment makes it vital to have specialist accountants who are highly qualified in superannuation, tax laws, and ASIC regulations to administer your fund. At SMSF Australia we provide SMSF accounting and taxation work along with more complex SMSF advice.